Mr. Larry Froom reports

H&R REIT ANNOUNCES CLOSINGS OF RETAIL AND OFFICE TRANSACTIONS AND OTHER LEADERSHIP UPDATES

H&R Real Estate Investment Trust has closed the following transactions, which were previously announced on Nov. 25, 2025:

1. One Canadian retail property was sold on Nov. 27, 2025.
2. H&R's non-managing 33.1-per-cent ownership interest in Echo Realty LP's U.S. retail portfolio was sold on Jan. 6, 2026. The purchaser assumed liabilities of $421.5-million at the REIT's ownership interest.
3. Twenty-three Canadian retail properties were sold on Jan. 27, 2026.
4. Two Greater Toronto Area office properties, 145 Wellington and 88 McNabb, were sold on Jan. 27, 2026.

Aggregate gross proceeds from the sales above amounted to approximately $1.1-billion. The net proceeds of approximately $727-million received in January, 2026, were used to repay corporate debt.

H&R has also entered into a management contract to manage the 23 Canadian retail and two office properties noted above.

The REIT expects to close the transactions to sell Hess Tower, a Houston office property, in February, 2026, and the remaining three Canadian retail properties in March, 2026.

Lantower Residential update

Effective April 1, 2026, Lantower Residential will externalize its property management operations and has entered into a master management agreement with Greystar. This strategic action is intended to enhance operating efficiency, improve cost structure and increase strategic flexibility across the residential platform.

The transition to a third party management model is expected to yield cost savings of approximately $5-million (U.S.) annually. In addition, this structure allows Lantower Residential to evaluate and pursue multifamily investment opportunities in additional high-growth Sunbelt markets without incurring incremental start up or platform expansion costs, thereby improving capital allocation efficiency and scalability.

Greystar is expected to retain the majority of Lantower's onsite property management employees and key home office associates, supporting operational continuity at the property level. Emily Watson will continue as chief operating officer of Lantower Residential and Hunter Webb will continue to lead the development platform, ensuring continuity of leadership, strategy and execution. Lantower Residential is expected to retain approximately 20 employees in asset management, development and accounting functions for Lantower Residential's properties.

The REIT believes this evolution of Lantower Residential's operating model strengthens margin durability, enhances portfolio flexibility and positions the platform for long-term value creation while maintaining high standards of service for residents.

Management update

Matt Kingston, the REIT's executive vice-president of development and construction, has left the REIT effective Jan. 15, 2026, to pursue other opportunities.

"During Matt's eight-year tenure with H&R and Primaris, he was instrumental in the creation and growth of the REIT's development group in Toronto, where he oversaw H&R's rezoning strategy for much of our downtown office portfolio," said Tom Hofstedter, executive chair and chief executive officer. "The entire H&R REIT team thanks Matt for his service and wishes him best of luck in his future endeavours."

Earnings release

H&R also previously announced that it will release its financial results for the three months and year ended Dec. 31, 2025, on Thursday, Feb. 12, 2026. Management will host a conference call to discuss the financial results for H&R REIT on Friday, Feb. 13, 2026, at 9.30 a.m. Eastern Time.

Conference call

Participants can join the call by dialling 1-800-717-1738 or 1-289-514-5100. For those unable to participate in the conference call at the scheduled time, a replay will be available approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-289-819-1325 or 1-888-660-6264 and enter the passcode 62704 followed by the pound key. The telephone replay will be available until Friday, Feb. 20, 2026, at midnight.

Webcast

A live audio webcast will be available through the REIT's website. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on H&R's website following the call date.

About H&R Real Estate Investment Trust

H&R REIT is one of Canada's largest real estate investment trusts. H&R REIT has ownership interests in a Canadian and U.S. portfolio primarily comprising high-quality residential (operating as Lantower Residential), industrial and office properties comprising approximately 21.3 million square feet.

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